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Business and Economy

Maine Town Will Borrow, Tap Fund to Avoid Tax Hike

MADISON, Maine - A Maine town reeling from a drop in the valuation of its largest taxpayer will borrow money and dip into its reserve fund to stave off a projected tax increase.

The Morning Sentinel reports Madison residents approved a plan to establish a $2.5 million line of credit and use $800,000 of the town's savings account to avoid the projected 30 percent tax increase. The value of Madison Paper Industries dropped from $229.7 million to $80 million in August, leaving the town scrambling for a way to ward off the tax hike.

About 250 people gathered Tuesday night to debate the issue. The night's vote means the tax rate is likely to increase no more than $2.50 per $1,000 of assessed value. The tax rate was $17.53 for 2013-14.